NOTICE OF HEARING
ON PROPOSED THIRD
AMENDMENT TO LEASE BLUFFTON-HARRISON
METROPOLITAN
SCHOOL DISTRICT
You are hereby notified that a public hearing will be held before the Board of Education (the “Board”) of the Bluffton-Harrison Metropolitan School District (the “School Corporation”) on October 23, 2023 at the hour of 6:00 p.m. (Local Time) at the School Corporation’s Board Room, 805 East Harrison Street, Bluffton, Indiana, upon a proposed Third Amendment to Lease (the “Third Amendment”) to be entered into between Bluffton-Harrison Middle School Building Corporation (the “Building Corporation”), as lessor, and the School Corporation, as lessee.
The proposed Third Amendment upon which the hearing will be held amends the existing Lease Agreement originally dated February 25, 1998 (the “Original Lease”, and together with the Original Lease, the “Lease”). The Third Amendment extends the term of the Original Lease and increases the rent payable thereunder in exchange for the renovation of and improvements to the property which is subject to the Third Amendment (the “Leased Premises”). The Third Amendment extends the term of the Original Lease to December 31, 2044, and increases the annual Lease rental by a maximum of $1,500,000, payable on June 30 and December 31 beginning with the completion of the renovation of and improvements to the Leased Premises or December 31, 2024.
As additional rental, the School Corporation shall maintain insurance on the Leased Premises as required in the Lease, shall pay all taxes and assessments against such Leased Premises, as well as the cost of alterations and repairs, and shall pay rebate amounts to the United States Treasury, if necessary. After the sale by the Building Corporation of its bonds (the “Bonds”) to pay for the cost of the renovation and improvements, including any other expenses incidental thereto, the increased annual Lease rental stated above shall be reduced to an amount equal to the multiple of $1,000 next higher than the sum of principal and interest due on the Bonds in each twelve-month period ending on January 15 plus $5,000, payable in equal semiannual installments.
The Third Amendment gives an option to the School Corporation to purchase the Leased Premises on any Lease rental payment date. The Leased Premises is Bluffton High School located at 1 Tiger Trail, Bluffton, Indiana in the School Corporation.
The plans and the estimates for the cost of the renovation and improvement, as well as a copy of the proposed Third Amendment, are available for inspection by the public on all business days, during business hours, at the Administration Building of the School Corporation, 805 East Harrison Street, Bluffton, Indiana.
At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of the Third Amendment, and upon whether the increased Lease rental provided for therein to be paid to the Building Corporation is a fair and reasonable rental for the renovations to the Leased Premises. Such hearing may be adjourned to a later date or dates, and following such hearing the Board may either authorize the execution of the Third Amendment as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation.
Dated this 14th day of September, 2023.
/s/ Secretary,
Board of Trustees
Secretary, Board of Education
Bluffton-Harrison Metropolitan
School District
nb 9/14
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